Passenger Services in Buenos Aires
In March 1991 the government separated the urban passenger rail services and metro operating within the city of Buenos Aires from the rest of the rail network, and to this end created the holding company Ferrocarriles Metropolitanos S.A. Whilst the freight concessionaires were expected to make a profit, it was recognized that the operation of these services would require public subsidy. Concessions were granted to the bidder who would require the lowest subsidy. Four companies bid successfully for the seven lines originally operated by the six divisions of FA, together with the Metro, as shown in Table 2.
Concessionaire | Line | Gauge | Length, km | Takeover Date |
---|---|---|---|---|
Metrovías | Línea Urquiza | standard | 26 | 1 Jan.1994 |
Metropolitano | Línea San Martín | broad | 55 | 1 Apr.1994 |
Ferrovías | Línea Belgrano Norte | metre | 52 | 1 Apr.1994 |
Metropolitano | Línea Belgrano Sur | metre | 58 | 1 May 1994 |
Metrovías | Metro | standard | 44 | 1994 |
Trenes de Buenos Aires | Línea Mitre | broad | 182 | 27 May 1995 |
Trenes de Buenos Aires | Línea Sarmiento | broad | 167 | 27 May 1995 |
Metropolitano | Línea Roca | broad | 252 | 1 Jan.1995 |
In spite of these companies receiving large government subsidies, the services operated by Metropolitano deteriorated to a point where the concession for the operation of Línea San Martín was revoked in 2004 and concessions for the operation of the other two lines by the company were revoked in 2007. All three lines are currently operated by the consortium UGOFE which Ferrovías joined in 2004.
The concessions were mainly for 10 years, with an optional 10 year extension, except for the Metro and the Línea Urquiza which were for an initial term of 20 years. As in the case of the freight concessions, the government maintained ownership of the assets, whilst the concessionaires undertook to operate their services as described in their original bid. Maximum fares were set by the government but were subject to automatic increases according to service quality and the prevailing rate of inflation. Financial penalties would be levied if agreed levels of service were not achieved.
Read more about this topic: Railway Privatisation In Argentina
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